No need to pay compensation when you leave Jafza job

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 No need to pay compensation when you leave Jafza job

The employer has no right to ask for visa expenses or compensation if notice for resignation is given 30 days in advance.

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Published: Mon 25 Apr 2016, 3:21 PM

Last updated: Tue 26 Apr 2016, 8:32 AM

I am working in an LLC located in Jafza and am holding a Jafza visa. Two months ago I completed my probation period and received my confirmation letter. The contract is unlimited. I want to resign my job due to personal reasons, and have given a resignation letter with the proper 30-day notification period. My boss, however, refused, noting that "the company will lose so much money." I am concerned that he will purposely delay the cancellation of my visa and withhold my pending salary, as he has done before to others. He also threatened me that a case will be filed against me if I contact the labour courts over his delay in visa cancellation. The Jafza office says that I must pay 45 days' salary if the company insists the contract is not completed. However, this was not mentioned anywhere in my contract. I did, however, agree to pay visa charges. Should I pay both?
Pursuant to your questions, you should not be required to pay 45 days' salary to your employer as you have served 30 days' notice to your employer upon completion of six months of probation period. Jafza follows provisions of Federal Law No. 8 of 1980 of the UAE (the 'Labour Law') regarding termination of employment. According to Article 11.8.1 (c) of Jebel Ali Free Zone Rules & Regulations, Fifth edition - 2014 "an employment agreement may be terminated by the Employee or Client (Employer) with notice having immediate effect provided all the requirements of the Federal Labour Law No. 8 of 1980, regarding the organisation of labour relations, as amended, has been satisfied.
Article 117(1) of the Labour Law states: "Both the employer and the worker may terminate a contract of employment of unlimited duration for a valid reason at any time following its conclusion by giving the other party notice in writing at least 30 days before the termination." In continuance Article 1 (II) 2 of the new Ministerial Order No. 765 of 2015 pertaining to unlimited employment contracts states: "One party acts, at any time, to terminate the contract subject to notifying the other party and continuing to honour contractual obligations for the duration of the notice period, which cannot be less than one month and cannot exceed three months."
Your employer is not in a position to claim visa charges from you in accordance to Article 11.5.1 and 11.5.2 of Jebel Ali Free Zone Rules & Regulations, Fifth edition - 2014' which reads as below:
Article11.5.1: "A client (Employer) recruiting Sponsored Employees will be responsible to bear the following costs:
(a) Processing the entry permit;
(b) Airfare;
(c) Processing the residence permit;
(d) The health card issued by the relevant health authority; and
(e) Renewal of residence permit and health card including the cost of a medical fitness certificate."
Article 11.5.2: "A Client (Employer) shall not charge the Sponsored Employee or deduct from the Sponsored Employee's salary the cost listed in Rule 11.5.1 above."
You may request Jafza to resolve the matter or in the event this matter is not amicably resolved you may request Jafza to transfer this matter to the Dubai Courts in accordance to Article 11.10 of Jebel Ali Free Zone Rules & Regulations, Fifth edition - 2014' which states: "In the first instance, Jafza shall attempt to amicably resolve a labour dispute arising between a Client and an Employee, through Jafza's concerned labour section. Where a resolution is not reached, Jafza shall transfer the matter to the Dubai Courts if it is requested by one of the parties."
Contact the bank if you have a loan dispute
I have an outstanding balance of Dh76,000 towards my personal loan in the bank. The bank has filed a case against me by taking my security cheque, and the amount has been frozen and no interest will be charged on this, so whatever I pay will be deducted from this amount.
But, can the bank file the same case twice on the same amount? The bank had filed a case the first time on my personal cheque of Dh196,000, which was a security cheque for a personal loan, but the case was withdrawn because I found a job and requested that the bank withdraw the case since I wanted to stamp my visa.
Due to unavoidable circumstances I was not able to keep my commitments, and the bank filed another case for the same amount. This time, however, it was not my personal cheque but cheque from the bank that I had signed when I got the first release. The amount was not Dh76,000 which I owe to the bank but the amount was Dh196,000. Is it possible for the bank to file the case twice on the same security amount? The bank is not calling me but I am getting calls from Tasheel which is acting as bank agency. Please advise.
 The bank may lodge a criminal complaint based on the dishonoured cheque in their possession as banks normally take cheque(s) from its customers as a collateral security against the loans extended by the banks. In this case, you provided a replacement security cheque to the bank which the bank has subsequently used to file a criminal complaint against you.
 A bank can take cheques totaling up to 120 per cent of the loan amount in accordance with Article 7(c) of Regulations No: 29/2011 Regarding Bank Loans & Services Offered to Individual Customers issued by the Central Bank of UAE on 23/02/2011 which states: "Banks and finance companies may only take from the customer the number of post-dated cheques covering the installments, and of a value not exceeding 120% of value of the loan or the debit balance."
Banks may file a criminal case if the security cheque of the customer is dishonoured based on Article 401 of the Federal Law No. 3 of 198 related to Penal Law, which states: "Detention or a fine shall be imposed upon anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed."
 However, it is advised that you may approach the bank and request them to provide you with easier repayment options to pay the balance of Dh76,000 pending towards the personal loan you had availed.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: Readers may e-mail their questions to: or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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